Govt CIOs see gains in Gen AI, but seek regulatory framework for success

Governments worldwide are integrating generative artificial intelligence (Gen AI) to streamline administrative processes, improve decision-making with data-driven insights, and create agile, citizen-centric services. However, over three-fourths of government CIOs and technology leaders (76%) believe that there should be a proper regulatory framework for Gen AI to succeed, according to a new research report published by global consultancy EY.

Besides the regulatory framework, other major challenges they are facing in adopting Gen AI include data privacy (48%), skill gap (36%), followed by lack of clear use cases (26%), as mentioned in the EY report.

According to experts, Gen AI systems are built on complex mathematical algorithms and trained on large volumes of content extracted from the internet. Gen AI models rely on statistical patterns and probabilistic computation to generate responses. They do not have a human-like understanding. This probabilistic method leads to the propagation of existing biases in the training content. There are several other issues with Gen AI.

In addition, Gen AI is known to ‘hallucinate’ and generate responses that are entirely fictitious and at times deceptive. Also, there are concerns around data privacy, consent, copyright, and legal ownership, as Gen AI systems are trained using data from the internet that may include data about people, organizations, and protected intellectual property (IP). In addition, there are concerns about the carbon footprint of Gen AI systems as they are built upon LLMs which have high energy requirements.

To be sure, a PwC report published in January also emphasized that while Gen AI systems are very useful to society, they also pose challenges and risks. The characteristics, efficiencies, and risks of Gen AI systems depend on factors such as the data used for training, the model used, the prompts given, and the user’s level of awareness through knowledge and training.

Governments need to clearly understand these risks and work towards mitigating frameworks with the help of industry and academia. They would need to establish policies and regulations that allow safe usage of these systems, drawing upon responsible AI principles such as transparency, fairness, inclusiveness, security, safety, and reliability. 
Gen AI systems would also need to align with human principles of ethics, equity, privacy, transparency, and accountability, as stated by PwC.

Nonetheless, the survey findings of the EY survey reveal that most public sector CIOs believe that the technology, when used responsibly, will enhance the citizen experience and drive innovation by automating tasks, enhancing policy analysis, and promoting transparency. In fact, 50% of public sector organizations are ready to implement their Gen AI solution for the first time in the next 12 months or so. The technology is also expected to have a significant impact on various departments and functions of the government, ranging from improving citizen-centric service delivery to greater efficiency and accessibility, as the survey said. Over 70% believe Gen AI will have a medium to high impact on their businesses.

“Governments across the globe are leveraging Gen AI as a major driver for economic growth and job creation. Similarly, the Indian government has identified AI as an important strategic technology and has also launched the National AI Strategy as well as other initiatives to promote AI adoption,” Anurag Dua, partner and leader of public finance management at EY India, said in a statement.

According to Dua, Gen AI enables smarter governance and fosters innovation in public service delivery. To maximize the benefits of Gen AI, our talent needs to be skilled in new-age technologies and continue our position as a global leader for tech talent.